The trucking industry is witnessing a revival as the peak shipping season for retailers arrives a month early, signaling the end of a prolonged freight recession.
Sub-heading: An Early Start to the Peak Shipping Season
The peak shipping season, typically beginning in July and August and extending through early fall, has commenced a month early this year. This shift is driven by retailers’ concerns over potential transit delays in the Red Sea and the impending threat of a longshoremen strike at the East Coast and Gulf ports in October. As a result, retailers initiated the restocking process in June, a month ahead of the usual schedule.
Sub-heading: Impact on the Trucking Industry
The early start to the peak shipping season has led to a significant increase in trucking visits to North American distribution centers. According to Motive, there was a 30% year-over-year increase in trucking visits to the distribution facilities of the top five retailers in June. This surge was also reflected in the order increases across various retail sectors, including apparel and electronics stores, home improvement outlets, grocery stores, and discount wholesalers.
The increased volume has provided a much-needed boost to the trucking industry, which has been struggling for years due to pandemic-induced surpluses at retailer distribution centers. This downturn led to a decrease in deliveries and, consequently, the closure of some trucking companies. However, the extended peak shipping season is expected to end the lengthy freight recession by the third quarter of 2024. The trucking industry is now looking forward to a more prosperous future.
